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Defence firm Chemring counts cost of US crisis as it issues another profit warning

The impact of the US government shutdown has reached the UK, writes Rupert Steiner.

Defence firm Chemring issued the latest in a series of profit warnings yesterday, this time blaming delays in US orders for torpedoing around £8million of full-year operating profit.

Investors manned the defences, selling almost 25 per cent of the stock, which fell 64.4p to 220p.

Plunge: Shares in Chemring fell 64.4p to 220p as investors sold almost 25 per cent of the stock

It is the latest in a raft of cautions
on earnings from chief executive Mark Papworth who cited four reasons
why the firm, which makes decoy missiles and flares, was trading under
par.

He said: ‘The full impact of the US government shutdown is not yet known but it will impact on the October order intake and deliveries to the US Department of Defence in the remaining few weeks of the financial year.’